Mayor of London Breed announces $ 27 million for the city’s down payment assistance loan program
February 17, 2021
Funding will be available for low and middle income teachers, first responders, families and individuals to buy their first home in San Francisco
San Francisco, California – London Mayor N. Breed today announced that the Mayor’s Office for Housing and Community Development (MOHCD) is issuing a new round of down payment assistance loan program (DALP) funds for first-time home ownership opportunities. This year’s DALP program will distribute more than $ 27 million to up to 80 households and is part of the mayor’s effort to make San Francisco a more equitable and affordable place to live.
“As we embark on the road to recovery, I want to make sure that San Francisco remains a city for everyone and a place where people can afford to live,” said Mayor Breed. “Just as we need to keep building homes to make sure we have enough offers, we also need to continue our programs like this that help people buy homes, get rooted in the community and find a place where they can feel at home for years to come. to come up. Giving people the help they need to invest in their community and make San Francisco their long-term home is how we’ll build our city back even stronger than before.
DALP provides up to $ 375,000 down payment assistance to low- and moderate-income first-time homebuyers to purchase any primary residence at market rates in San Francisco. The funds are available for a wide range of households with varying incomes.
As San Francisco continues its economic recovery, the stability of low and moderate income families is critical to their ability to prepare for and access the opportunities that will arise. Additionally, preserving fair ownership opportunities has the dual impact of enabling ordinary families in San Francisco to tap into the wealth-creating potential that homeownership has always meant in the United States, of protecting the perseverance of San Francisco’s long-standing communities and prevent displacement. .
Down payment assistance is available for:
- General public households earning up to 175% of the area’s median income (MAI), or $ 156,900 for a single person;
- Educators employed by the San Francisco Unified School District earning up to 200% MAI or $ 179,300 for a single person;
- Households of first responders (active uniformed members of the fire, police or sheriff services) earning up to 200% MAI or $ 179,300 for a single person.
“Over the years, I have seen how DALP has transformed the lives of new owners and I want to see this program not only succeed, but also expand. I want to see more programs for other essential workers, such as our early childhood educators who are struggling to live in the neighborhoods they serve, “said supervisor Myrna Melgar.” It’s not just about financial aid, but financial literacy and support provided by the program. Most people, especially immigrants and working class people, do not have the same access to the capital or knowledge needed to navigate the home buying process. proud that San Francisco is investing in the economic empowerment of our families and communities, which will reap lasting benefits. ”
In order to be eligible to apply for DALP funds, applicants must complete 10 hours of first-time home buying training and receive initial mortgage approval from a MOHCD approved lender. No monthly payment is required under the program. When the owner sells or transfers the property, he pays back the original loan amount, plus a fair share of the capital gain.
“Although the DALP process can be overwhelming, it is manageable. My wife and I are not in tech / biotechnology, medicine or other high income fields and we probably couldn’t have afforded a house in San Francisco without DALP, ”said Ronnie Bautista , general recipient of the DALP. “We hope that other families like ours who are not wealthy, who have relatively high incomes or who have limited resources apply to DALP. Being from San Franciscan, DALP made the move to ownership is a reality. “
Potential buyers will be able to start applying for DALP on the MOHCD website February 26, 2021. As with all MOHCD housing programs, the City constantly sees high demand and as a result lotteries are administered to allocate funds. Applicants who submit an application for the lottery before the application deadline will be entered into a lottery which will take place on June 1, 2021 and applicants will be notified shortly thereafter.
“We are thrilled to launch this year’s down payment assistance loan program, which creates another opportunity for local residents to pursue their dream of homeownership,” said Eric Shaw, director of the Homeownership Program. MOHCD. “We view DALP as one of our critical investments in creating housing opportunities for all San Franciscans. We know that homeownership can be a challenge for many without down payment assistance and see this as one of the office’s many investments in creating housing opportunities for all residents. Help with the down payment is not enough, which is why we also fund housing counseling and financial education to provide much-needed support to those looking to buy a home.
The MOHCD invests in five agencies that are available year round for homeownership advice and financial literacy throughout the city. Additionally, the city’s local partner, Homeownership SF, will host a three-day virtual housing exhibit on March 4, 5 and 6, where interested first-time homebuyers can meet with property advisors and begin the process of home ownership. training of home buyers. More information about the virtual event and registration can be found here.
“You keep moving forward and keep trying what I have been doing,” said Cheryl Liu, a 2nd grade SFUSD teacher who received DALP funds and was able to buy a house in District 11. “I don’t have to worry about paying rent or being pushed into the suburbs for something more affordable.”
This DALP fund set is part of the annual general dollar down payment assistance loan release. The City has worked to expand this program and ensure that diverse communities have access to this money and to match local resources with immense needs. Additional DALP funds specifically targeting the most vulnerable and underfunded communities are expected to be released at the end of summer 2021.
This press release was produced by the mayor’s office of San Francisco. The opinions expressed here are those of the author.